Biotech Values

[biomaven0]

Pharma groups with more than half of their sales from such "non-pharmaceutical" areas trade at valuation premiums of about 15% to less diversified peers.

I think this is mostly a function of patent expirations - you apply a discount to current earnings that are due to vanish.

Of course to the extent that non-pharmaceutical areas don't have the same cliffs, a higher multiple is indeed justified.

Peter